CHARLOTTE, North Carolina, September 16, 2022 /PRNewswire/ — Connect Holding II LLC d/b/a Brightspeed (“Brightspeed”) today began marketing to potential lenders and investors debt financing for its previously announced acquisition (the “Acquisition”). ) of Lumen Technologies, Inc.’s historic local carrier business has operations in 20 states in the Midwest, Mid-Atlantic and Southeast regions of United States.
Brightspeed expects the debt financing to consist of approximately $5.465 billion of guaranteed debt, including a $600 million revolving credit facility, which is expected to be (i) secured by all of Brightspeed’s subsidiaries, including Embarq Corporation (“Embarq”) and its Transferring Subsidiaries, and (ii) secured by substantially all of the assets of Brightspeed and its subsidiaries guarantors, other than the assets of Embarq and certain subsidiaries of Embarq which are “restricted subsidiaries” under the indenture governing the 7.995% Senior Notes of Embarq due 2036 (the “Embarq Notes”) ).
As part of the acquisition, Embarq will be acquired by Brightspeed and the Embarq Notes are expected to remain outstanding as obligations of Embarq. Embarq tickets should not be guaranteed by any of Embarq’s affiliates (or by Brightspeed or other Brightspeed affiliates) or guaranteed by any assets of Embarq or its affiliates (or assets of Brightspeed or other Brightspeed subsidiaries).
Debt financing is subject to market and other conditions, and may not occur on the terms described above or at all.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities and does not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Certain statements contained in this press release are “forward-looking statements” and are subject to various risks, uncertainties and assumptions. Statements which are not historical in nature and which can be identified by the use of words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend of”, “may”, “plan”, “project”, “should”, “target”, “will” and similar expressions (or the negative of such expressions) are forward-looking statements. Forward-looking statements are made about the basis of our current expectations and beliefs regarding future events and, therefore, involve a number of assumptions, risks and uncertainties.If one or more of these risks or uncertainties materialize, or if the underlying assumptions incorrect, actual results could differ from those anticipated, estimated or expected. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such statements. prospective. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
Based at Charlotte, North Carolina and expected to have assets and associated operations in 20 states, Brightspeed will deliver broadband and telecommunications services through a network platform capable of serving more than 6 million homes and businesses. The company aims to bridge the digital divide by deploying a state-of-the-art fiber network and a customer experience that makes staying connected simple and seamless. For more information about Brightspeed, visit the company’s website, www.brightspeed.com.